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Bad Credit and How to Make It HistoryPosted On October 26, 2017
Your credit score plays a major factor in determining your interest rates and which vehicle you can afford when applying for a car loan. The first thing money lenders, financial institutions, and insurance companies look at to determine your financial reliability is your credit score, so avoiding bad credit is a must. However, we know that things happen that make it unavoidable, such as a death in the family, unexpected medical expenses, or even student loans. Regardless of why you have bad credit, we at Summerside Toyota have some simple tips to fix your credit score to help you get a car loan with affordable payments.
Tips to fix your credit score
Spending less is a great way to avoid bad credit, but is easier said than done. Unexpected expenses caused but unforeseen circumstances aren’t always within your control. By following these simple tips, you can start fixing your credit score today.
Avoid Using Your Credit Card– Whenever possible, avoid using your credit card as it incurs debt and lowers your credit score. If you must use your credit card for a purchase, try to pay it off right away and keep you credit card payments low.
Make More Than Minimum Payments– By paying off more than the minimum balance you’re showing lenders that you’re financially responsible and lowering your debt faster.
Pay Your Bills on Time– It seems simple, but the best way to raise your credit score is to pay your monthly bills in full and on time.
Keep Your Credit Balance Low– Keep your credit card balance in check by not letting it get too high. Avoid larger purchases and pay your debt off as much and as often as possible. Doing this will lower your total debt and improve your credit score.
Bad Credit Car Loans at Summerside Toyota
If you do have bad credit, we offer bad credit car loans at Summerside Toyota with affordable monthly payments and reasonable interest rates. We’ve got a great selection of pre-owned Toyota vehicles to help you save even more. Following the tips listed above can help you avoid bad credit and get pre-approved for a car loan so you can get behind the wheel of a new or new-to-you Toyota faster.